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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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JeffinVA  
#1 Posted : Sunday, May 24, 2020 1:30:12 PM(UTC)
JeffinVA

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I will retire on December 31, 2020. My final pay should deposit on January 8, 2021, in the next tax year. I would like to maximize my one and only TSP deduction for tax year 2021. In mid-December I will make my final TSP election, essentially a one-time, final deduction.

For ease of argument, let’s say my final salary for the last pay period is $5,000 and my cashed out annual leave will be $15,000. I understand TSP deductions cannot come out of the annual leave, just salary.

One of my questions is this: Can I set my one and only TSP deduction that will pay out on January 8th to $5,000 and assume the annual leave will pay ALL of the federal & state taxes, social security, Medicare, FEHB and FERS for the entire $20,000 gross pay? Will DFAS (the servicing pay agency) allow this?

Alternatively, would I have to assume the $5,000 salary itself has to fully support the TSP deduction and its own deductions and withholdings? So probably the best I can do is take a TSP deduction in the $3,000 to $4,000 range?

Any insights/help would be appreciated.
Roger.D  
#2 Posted : Sunday, May 24, 2020 7:28:24 PM(UTC)
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Originally Posted by: JeffinVA Go to Quoted Post

Alternatively, would I have to assume the $5,000 salary itself has to fully support the TSP deduction and its own deductions and withholdings? So probably the best I can do is take a TSP deduction in the $3,000 to $4,000 range?

Any insights/help would be appreciated.


I think this is what would have to occur.

You might try asking in the Federal Employee Benefits Q&A section. But Ed hasn't posted anything for a while. Hopefully he is healthy.

https://forum.federalsou...lt.aspx?g=topics&f=6

thanks 1 user thanked Roger.D for this useful post.
JeffinVA on 5/25/2020(UTC)
JeffinVA  
#3 Posted : Monday, May 25, 2020 10:53:33 AM(UTC)
JeffinVA

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Originally Posted by: Roger.D Go to Quoted Post
Originally Posted by: JeffinVA Go to Quoted Post

Alternatively, would I have to assume the $5,000 salary itself has to fully support the TSP deduction and its own deductions and withholdings? So probably the best I can do is take a TSP deduction in the $3,000 to $4,000 range?

Any insights/help would be appreciated.

I think this is what would have to occur.

You might try asking in the Federal Employee Benefits Q&A section. But Ed hasn't posted anything for a while. Hopefully he is healthy.

https://forum.federalsou...lt.aspx?g=topics&f=6

I posted a response there a few months back, but it never got posted. I figured I'd try here.
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